Texas Real Estate Finance - Chapter 2
Decrease
As the cost of borrowing money increases, the amount of lending activity will...? Increase Decrease Remain the same The cost of borrowing money is not related to lending activity
All of the above
Instruments of credit can do which of the following...? Be regulated by member banks of the Federal Reserve All of the above Administer credit controls Collect and clear checks
M1
Money that is easily obtainable is considered...? M1 M2 M3 M4
All of the above
National member banks of the Federal Reserve must do which of the following...? Comply with the rules and regulations of the Federal Reserve Clear checks Maintain reserves All of the above
12
The Federal Reserve System includes how many geographical districts...? 6 8 12 20
All of the above
The Federal Reserve is responsible for which of the following...? Supervise banking activities Establishing facilities for the sale of commercial paper All of the above Influence the availability of money and credit
1913
The Federal Reserve was established in what year...? 1913 1931 1945 2009
Regulation Z
The Truth in Lending Act is also known as...? Regulation X TARP RESPA Regulation Z
Interest rate
The cost of borrowing money is expressed as a/an...? Variable fee Flat fee Commission Interest rate
There is an increase in the money supply
The economy generally grows when which of the following occurs...? There is an increase in the money supply There is a decrease in the money supply When the money supply remains even A decrease in the population
Discount rate
The minimum interest rate set by the Federal Reserve for lending to other banks is known as the...? Subprime rate Discount rate Starter rate Prime lending rate
T (True)
The more money an individual has, the more purchasing power they have...? T (True) F (False)
M2
The supply of less liquid money is considered...? M1 M2 M3 M4
M3
The supply of money which is the least liquid is considered...? M1 M2 M3 M4
Sub-prime mortgage
This refers to a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages...? Prime mortgage Premium mortgage Discount mortgage Sub-prime mortgage
There is a boost in economic activity
What happens when the Federal Reserve decreases the bank's required reserves amount...? Economic activity slows down There is a boost in economic activity Lending on real estate transaction decreases The real estate market stalls
All of the above
Which of the following are covered under TILA...? Real estate loans under 50,000 dollars Personal loans under 50,000 dollars Consumer loans under 50,000 dollars All of the above
Federal Reserve
Which of the following has broad powers in controlling credit and the amount of money in circulation in the United States...? Attorney General Department of Finance Federal Reserve U.S. Comptroller
FDIC
Which of the following helps to limit the impact on the economy and the financial system when a bank or thrift institution fails...? RESPA TILA FDIC FHLB
TILA
Which of the following is covered under Title 1 of the Consumer Protection Act of 1968...? HDIC TARP TILA RESPA